MIRA INFORM REPORT

Report Date :

04.10.2011

IDENTIFICATION DETAILS

Name :	JALARAM COTTON AND PROTEINS LIMITED
Registered Office :	301, Toral Complex, Jawahar Road, Rajkot – 360001, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.08.2008
Com. Reg. No.:	04-054905
Capital Investment / Paid-up Capital :	Rs.92.291 Millions
CIN No.: [Company Identification No.]	U17121GJ2008PLC054905
TAN No.: [Tax Deduction & Collection Account No.]	RKTJ01812G
PAN No.: [Permanent Account No.]	AACCJ05870
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in Cotton Ginning and Pressing, Cottonseed Oil Mill and Edible Oil Refinery
No. of Employees :	(Approximately)

RATING & COMMENTS

MIRA’s Rating :

B(29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 590000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	301, Toral Complex, Jawahar Road, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2225277
Fax No.:	91-281-2225295
E-Mail :	info@jalcott.com/jalcot@rediffmail.com
Factory :	Jasdan Ahmedabad, Highway, Jasdan – 360050, Gujarat, India
Tel. No.:	91-2821-222201
Fax No.:	91-2821-222228
E-Mail :	info@jalcott.com
Mumbai Office :	S-27, Cotton Exchange Building, Cotton Green, Mumbai – 400033, Maharashtra, India
E-Mail :	info@jalcott.com

DIRECTORS

As on 30.09.2010

Name :

Mr. AnandKumar ArvindKumar Popat

Designation :

Managing Director

Address :

Shri Hari Society, Block No-4, Station Road, Jasdan – 360050, Gujarat, India

Date of Birth/Age :

26.03.1962

Date of Appointment :

29.08.2008

DIN No.:

01406894

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U17121GJ2008PLC054905	JALARAM COTTON & PROTEINS LIMITED	Managing director	11/08/2009	29/08/2008	-	Active	NO
U91990MH2010NPL206042	ALL INDIA COTTON GIN PRESS ASSOCIATION	Director	26/11/2010	26/11/2010	-	Active	NO

Name :

Mr. Ghansyam ArvindKumar Popat

Designation :

Director

Address :

3 Shri Hari Society, Block No-7, Station Road, Jasdan – 360050, Gujarat, India

Date of Birth/Age :

22.11.1964

Date of Appointment :

29.08.2008

DIN No.:

02217508

Name :

Mr. Harsadrai ArvindKumar Popat

Designation :

Director

Address :

Gangabhuvan Moti Chowk, Jasdan – 360050, Gujarat, India

Date of Birth/Age :

15.10.1968

Date of Appointment :

22.10.2008

DIN No.:

02217511

Name :

Mr. JayeshKumar ArvindBhai Popat

Designation :

Whole-time director

Address :

Shrihari Society, Station Road, Jasdan – 360050, Gujarat, India

Date of Birth/Age :

02.09.1963

Date of Appointment :

22.10.2008

DIN No.:

02365229

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U17121GJ2008PLC054905	JALARAM COTTON & PROTEINS LIMITED	Whole-time director	11/08/2009	22/10/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
ArvindBhai Popat	1058880
Anandkumar Arvindkumar Popat	1512600
Jayeshkumar ArvindBhai Popat	1512600
Ghansyam A Popat	1512600
Harshadrai A Popat	1512600
Ravi G Popat	149040
Sagar A Popat	149040
Samir A Popat	149040
Dadhania Rameshchandra K.	300
Vasani Rajeshbhai Amrutlal and Vasani Amishaben Rajeshbhai	500
Makani A Amrutlal	2500
Akaviya BatukBhai Badalbhai	1000
Barbhaya SamdipBhai	3000
Goti Sangitaben Pravinbhai	1800
Shah Jaimini Bipinchandra	2700

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	94.00
Other top fifty shareholders	6.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Cotton Ginning and Pressing, Cottonseed Oil Mill and Edible Oil Refinery

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Not Available

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
FBD-HDFC (Secured against LC)	0.000	25.961
HDFC Bank Limited – FDOD(secured against FD of Shreenathji Cotton Ind.- Sister Concern)	0.000	12.701
S.B.I Cash Credit A/c(secured against hypothecation of Current Assets)	169.384	224.909
HDFC Vehicle Loan (secured against Tanker)	0.000	0.311
SBI Term Loan(secured against land and building and hypothecation of Plant and Machinery)	2.000	64.264
SBI Tractor Loan(secured against Tractor)	0.323	0.341
Standard Chartered Bank(against personal guarantee by director)	1.467	1.987
IDBI Working Capital Demand Loan (secured against personal guarantee of Directors)	100.000	0.000
SBI Pledge Loan (secured against pledge of stock in trade)	45.527	0.000
HDFC Vehicle Loan (secured against Loader)	0.093	0.000
HDFC Vehicle Loan (secured against Tractor)	0.425	0.000
SBI foreign Currency Term Loan (secured against land and Building and hypothecation of Plant and Machinery)	51.788	0.000
SBI Term Loan (secured against land and Building and hypothecation of Plant and machinery)	24.814	0.000
Total	395.821	330.474
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Loan from Shareholders	35.411	24.462
Loan from Bank and NBFC	7.810	0.000
Total	43.221	24.462

Banking Relations :	--
Auditors :
Name :	Sarda and Sarda Chartered Accountant
Address :	Sakar, 4^th Floor, Opposite Rajkumar College, Dr. Radhakrishnan Road, Rajkot – 360001, Gujarat, India
PAN.:	ABSPS7240M
Associates/Subsidiaries :	· Shreenathji Cotton Industries, Jasdan · Shree Jalaram Ginning Factory, Jasdan

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs.10/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
8154650	Equity Shares	Rs.10/- each	Rs.81.546 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		77.383	74.523
2] Share Application Money		14.908	0.000
3] Reserves & Surplus		56.589	42.000
4] (Accumulated Losses)		0.000	0.000
NETWORTH		148.880	116.523
LOAN FUNDS
1] Secured Loans		395.821	330.474
2] Unsecured Loans		43.221	24.463
TOTAL BORROWING		439.042	354.937
DEFERRED TAX LIABILITIES		7.485	0.000
TOTAL		595.407	471.460
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		221.068	225.495
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	246.066	177.075
	Sundry Debtors	128.840	128.708
	Cash & Bank Balances	9.090	7.396
	Other Current Assets	0.000	0.000
	Loans & Advances	11.129	11.620
Total Current Assets		395.125	324.799
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.034	68.026
	Other Current Liabilities	3.217	8.873
	Provisions	5.535	1.935
Total Current Liabilities		20.786	78.834
Net Current Assets		374.339	245.965
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		595.407	471.460

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009
	SALES
		Income	2080.989	1131.957
		Other Income	21.610	3.564
		TOTAL (A)	2102.599	1135.521
Less	EXPENSES
		Increase/Decrease in Stock	(44.022)	(37.560)
		Raw Material Consumption	1526.647	955.346
		Purchase of trading goods for resale	422.346	94.586
		Direct Expenses	109.828	63.948
		Administrative Expenses	10.329	5.036
		Preliminary Expenses	0.000	1.267
		Selling Expenses	10.322	7.350
		TOTAL (B)	2035.450	1089.973
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		67.149	45.548
Less	FINANCIAL EXPENSES (D)		43.133	35.854
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.016	9.694
Less/ Add	DEPRECIATION/ AMORTISATION		9.156	5.381
	PROFIT BEFORE TAX and Prior Items		14.860	4.313
Less	Prior Period Adjustments		2.562	0.000
	PROFIT BEFORE TAX		12.298	4.313
Less	TAX		5.146	0.065
	PROFIT AFTER TAX		7.152	4.248
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.249	0.000
	BALANCE CARRIED TO THE B/S		11.401	4.248
	EARNINGS IN FOREIGN CURRENCY
	TOTAL EARNINGS		3.144	0.161
	Earnings Per Share (Rs.)		0.94	0.65

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009
PAT / Total Income	(%)	0.34	0.37
Net Profit Margin (PBT/Sales)	(%)	0.59	0.38
Return on Total Assets (PBT/Total Assets}	(%)	1.99	0.78
Return on Investment (ROI) (PBT/Networth)		0.08	0.03
Debt Equity Ratio (Total Liability/Networth)		3.09	3.72
Current Ratio (Current Asset/Current Liability)		19.00	4.12

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

· Building

· Premises

· Residential Building

· Furniture and Fixtures

· Vehicles

· Plant and Machinery

· Computer

· Lease Rights

· Building WIP

· Machinery WIP

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject : None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.92
UK Pound	1	Rs.76.51
Euro	1	Rs.66.64

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	2
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.